Anatomy of An Actium Loan: Helping Meet Payroll

A few weeks ago, we received a call on Friday morning from a business owner needing $200,000 to make payroll. After several large deposits did not materialize he found himself with his hands tied and short money. After he offered to pledge collateral property he purchased several months earlier in Washington County, Utah, we needed to send someone to the property because we must inspect collateral before we can make a loan. So, we asked if he could wait until Monday to receive the loan proceeds and we could evaluate the collateral in person over the weekend.

An Actium principal flew to St. George, Utah that evening, inspected the property the next morning and confirmed the value of the property. We were able to fund the loan Monday morning, allowing our borrower to make payroll. The borrower only wanted the loan for one month so we charged a higher origination fee of 5%. The loan carried a 12% per annum interest rate and has an LTV of 68%.